UOB Kay Hian analyst Adrian Loh has maintained their bullish stance on YSHLF stock, giving a Buy rating on February 28.
Adrian Loh has given his Buy rating due to a combination of factors that highlight Yangzijiang Shipbuilding’s strong financial performance and strategic positioning. The company reported impressive results for 2024, with a significant increase in revenue and profit, driven by robust performance in both its shipbuilding and shipping segments. Notably, the shipbuilding margins improved, showcasing the company’s effective cost management and ability to leverage favorable market conditions.
Despite concerns over the United States Trade Representative’s proposal to impose port fees on Chinese-built vessels, Yangzijiang Shipbuilding has not experienced any order cancellations or deferrals. The management’s confidence in passing on the costs to clients further mitigates potential risks. Additionally, the company’s valuation appears attractive, with a low price-to-earnings ratio and a strong return on equity forecasted for 2025. These factors collectively support Adrian Loh’s Buy rating for the stock.
Loh covers the Industrials sector, focusing on stocks such as Sembcorp Industries, Seatrium Limited, and Yangzijiang Shipbuilding (Holdings). According to TipRanks, Loh has an average return of 11.7% and a 54.26% success rate on recommended stocks.
In another report released on February 28, DBS also assigned a Buy rating to the stock with a S$3.80 price target.